Agomelatine acts as an agonist at melatonin receptors MT1 and MT2, which helps regulate circadian rhythms and improve sleep patterns disrupted in depression. Additionally, it functions as an antagonist at serotonin 5-HT2C receptors, leading to increased release of norepinephrine and dopamine in the frontal cortex. This dual action contributes to its antidepressant effects by improving mood and normalizing circadian rhythms without typical SSRI side effects like sexual dysfunction.